The Senate on Wednesday approved President Bola Tinubu’s request to secure $2.847 billion in new foreign loans, including a $500 million debut Sovereign Sukuk, to finance part of the 2025 budget deficit and refinance Nigeria’s maturing Eurobonds.
The approval followed the adoption of a report presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada Aliyu (APC, Sokoto North), which reviewed the president’s proposal titled “New External Borrowing and Refinancing.”
According to the committee, $2.347 billion will be sourced from the international capital market to help fund the 2025 budget, while $500 million will be raised through the Sukuk bond to finance major infrastructure projects across the country.
The approval comes amid widespread concern over Nigeria’s growing debt, which has reportedly surpassed ₦97 trillion as of mid-2025, according to data from the Debt Management Office (DMO).
While critics have warned that increased borrowing could deepen fiscal strain, government officials maintain that carefully managed loans are vital for sustaining growth, completing ongoing projects, and maintaining investor confidence.
Presenting the committee’s report, Senator Wamakko said the borrowing plan was necessary to ensure economic stability and prevent disruptions to ongoing national projects.
“The borrowing plan will enable the federal government to meet its 2025 funding needs and fulfill its financial obligations without derailing ongoing commitments,” Wamakko stated.
Supporting the motion, Senator Sani Musa (APC, Niger East), who chairs the Senate Committee on Finance, said the loan request was crucial to the smooth implementation of the 2025 Appropriation Bill.
“We must give approval to this request so that the 2025 budget can be properly funded,” Musa added.
Also speaking, Senator Adetokunbo Abiru (APC, Lagos East), Chairman of the Committee on Banking, Insurance and Other Financial Institutions, clarified that the new loans would not significantly increase Nigeria’s debt burden.
“This is primarily a compliance issue. The 2025 Appropriation Act already captured the borrowing as part of deficit financing. The second component is a refinancing arrangement to ensure that Nigeria does not default on its Eurobond obligations,” Abiru explained.
Similarly, Senator Adams Oshiomhole (APC, Edo North), Chairman of the Senate Committee on Interior, defended the plan, arguing that borrowing is not inherently negative if funds are channeled toward productive and job-creating sectors.
“There’s nothing wrong with borrowing when it is properly structured and directed at addressing unemployment and infrastructural decay,” Oshiomhole said.
